Course Syllabus
International Business, BT360, Spring 2012
Section A, 10:00 am – 12:50 pm, Tuesday
Section B, 10:00 am – 12:50 pm, Thursday
Contact Information
Professor:
Bill Guth
Visiting Scholar, Howe School of Technology Management, Stevens Institute of
Technology
Professor Emeritus of Management and Strategy
Academic Director, International Studies Program
Stern School of Business, New York University
Email:
wguth@stern.nyu.edu
Office Hours:
After class or by appointment.
Course Description
The International Business course focuses on the impact of variation in the economic, political, legal,
social, and cultural contexts of nations on the competitive business strategies of local and multinational
firms.
Course Objectives
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Develop concepts and tools useful in evaluating and formulating the competitive business
strategies of firms in the changing global environment.
Develop a general framework for country analysis useful in identifying the opportunities,
challenges, and risks various countries present both to firms headquartered in them, and to
multinational firms currently or contemplating competing in them.
Apply the international business concepts and tools, and the framework for country analysis to a
number of different firms in a number of different industries in a number of different countries.
Develop communication skills, including the ability to present effectively and communicate in
writing effectively.
Materials for Course:
1. Custom published book with McGraw-Hill (I will post the ISBN for the ebook version of the
book as soon as I receive it from the publisher) consisting of:
Chapters 1, 2, 3, 12, 13 and 14 from Hill, C.W.L., International Business 8E
Chapter 2, Resources and Rents, from Collis and Montgomery, Corporate Strategy: A Resource-Based
Approach, 2E
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2. A coursepack of 13 cases from HBS Publishing (I will forward the link early next week):
a. Wal-Mart in Europe
b. Grolsch: Growing Globally
c. Dabur India: Globalization
d. Four Seasons Goes to Paris
e. Denmark: Globalization of the Welfare State
f. Finland and Nokia: Creating the World’s Most Competitive Economy
g. Dogus Group: Weighing Partners for Garanti Bank
h. HCL Technologies (A)
i. Philips vs. Matsushita: The Competitive Battle Continues
j. Acer, Inc.: Taiwan’s Rampaging Dragon
k. P&G Japan: The SK-II Globalization Project
l. The Global Wine War 2009: New World vs. Old
m. BRL Hardy
3. Chapter 1.1 of the Global Competitiveness Report, 2011-2012, downloadable from
http://www.weforum.org
4. Additional materials (e.g., articles by Guth, WD) either passed out in class or provided
electronically
Pedagogy
The course will be delivered in two interacting modes: 1) Lecture-discussion, and 2) Case discussion.
Typically, a lecture-discussion class, based on the readings assigned for that class, will be followed by a
case discussion class which applies the concepts, tools, research findings and general experience
developed in the lecture-discussion class. For this approach to work well, it is important that all students
come prepared to participate in each class. This means carefully reading the materials assigned for the
lecture-discussion classes, noting key points made and questions raised in your mind; and, it means
carefully answering the questions (I will distribute them separately each week) suggested for the case
assigned for the case discussion classes, and any others you find particularly interesting.
Deliverables/Assignments/Grade Weights
1. Two written team case reports making strategic recommendations to company management – 20%
(10% each)
2. A mid-term exam – 30%
3. In-class team presentation of strategic analysis and recommendations to management of the BRL
Hardy company – 20%
4. Final individual report presenting and supporting your individual recommendations after
reviewing all the team presentations – 20%
5. Class Participation – 10%
Ethical Conduct
Enrollment into the undergraduate class of Stevens Institute of Technology signifies a student's
commitment to the Honor System. It is the responsibility of each student to become acquainted with and
to uphold the ideals set forth in the Honor System Constitution. Specific student responsibilities include:
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Maintaining honesty and fair play in all aspects of academic life at Stevens.
Writing and signing the pledge, in full, on all submitted academic work.
Reporting any suspected violations to an Honor Board member or to the Dean of Student
Development.
Cooperating with the Honor Board during investigations and hearings.
Pledge of the Honor System
The pledge signifies that the work submitted by a student is indeed his/her own. There is one designated
pledge to be used for tests, homework assignments, lab reports, and computer projects. The pledge shall
be written in full and signed by the student on all submitted academic work. Any references used
(including texts, tutors, classmates, etc.) should be listed below the written pledge.
"I pledge my honor that I have abided by the Stevens Honor System."
Grading Scale
Grade
Score
Grade
Score
A
93-100 C
73-76
A-
90-92
C-
70-72
B+
87-89
D+
67-69
B
83-86
D
63-66
B-
80-82
D-
60-62
C+
77-79
F
<60
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BT 360 – International Business
Spring, 2012
Section A – Tuesday, 10:00 am to 12:50 pm, BC320
Section B – Thursday, 10:00 am to 12:50 pm, BC320
Class
#
1
Date
Topics
1/17 T Course introduction and
1/19 R overview
2
1/17 T Globalization and the
1/19 R multinational enterprise
(MNE)
3
1/24 T International strategy for
1/26 R competitive advantage
Profiting from
international expansion
4
1/24 T Location bound versus
1/26 R non-location bound firm
specific advantages
1/31 T Leveragability of
2/2 R intangible versus tangible
assets across national
boundaries
5
6
1/31 T
2/2 R
Basing international
strategy on strategically
valuable resources
7
2/7 T
2/9 R
8
2/7 T
2/9 R
How does “country”
matter in international
competition?
How countries differ:
political, economic, legal
systems
Strategic challenges for
companies in rich, poor,
and developing countries
Assignment
Read: Course Syllabus
Guth, WD, “New Avenues for Growth: Challenges of
Five Major Trends in the Global Environment
“(Attached)
Think: 1) Why do managers of firms want to expand
beyond their national boarders?
2) Why must some firms expand beyond their national
borders?
3) What is required for a firm successfully to expand
beyond its national borders?
4) How should managers go about picking national
markets for expansion, and the approach to entering those
markets?
Find in the newspapers an example of a firm that has
made a major international expansion move to help you
think about these questions.
Read:
Hill, Chapter 1, “Globalization,” International Business ,
8E (IB8E)
Hill, Chapter 12, The Strategy of International Business,
(IB8E)
Prepare for discussion:
Wal-Mart in Europe
Read:
Collis and Montgomery, Chapter 2, “Resources and
Rents,” Corporate Strategy: A Resource-based
Approach” (IB8E)
Ghemawat, “Distance still matters: The hard reality of
global expansion”, HBR (2001) – to be distributed
Prepare for discussion:
Grolsch: Growing Globally
Team report #1 due (See separate assignment guidance
sheet for details)
Read:
Hill, Chapter 2, “National Differences in Political
Economy”, (IB8E)
“Emerging Giants: Building World-Class Companies in
Emerging Markets” (To be distributed)
Prepare for Discussion:
Dabur India - Globalization
4
9
2/14 T How countries differ:
2/16 R societies and cultures
Read:
Hill, Chapter 3, “Differences in Culture”, (IB8E)
10
2/14 T
2/16 R
2/28 T
2/23 R
Adapting strategy to
differences in culture
The macro and
microeconomics of
country competitiveness
Theories of the economic
growth of countries
2/28 T Societal values and
2/23 R economic growth
3/6 T Regional trading blocks
3/1 R
3/6 T Regional affiliation and
3/1 R country economic strategy
3/20 T Linking country
3/8 R competitiveness with firm
competitiveness
3/20T Overcoming country/firm
3/8 R weaknesses through
alliances
Prepare for discussion:
Four Seasons goes to Paris
Read:
Chapter 1.1, The Global Competitiveness Report, 20112012, available at http://www.weforum.org
17
3/27 T Assessing country markets
3/22 R for entry
18
3/27 T Mid-Term Exam
3/22 R
4/3 T Formulating, revising and
3/29 R reorienting international
strategy
Read:
Hill, Chapter 14, “Entry Strategy and Strategic
Alliances”, (IB8E)
Hamel, Doz, and Prahalad, “Collaborate with your
competitors and win”
Review major concepts and tools, and key case
“takeaways”
Read:
Guth, “Strategic Inertia – A Cognitive Perspective “ –
lecture slides
Mezias, Grinyer and Guth, “Changing Collective
Cognition: A Process Model for
Strategic Change”
Guth, “Leadership and Rhetoric” (Note to be distributed)
Prepare for Discussion:
HCL Technologies (A)
Read:
Hill, Chapter 14, “The Organization of International
Business”, (IB8E)
Prepare for Discussion:
Philips vs. Matsushita: The Competitive Battle Continues
Reading:
To be announced
Prepare for Discussion:
Acer, Inc. : Taiwan’s Rampaging Dragon
Team report #2 due – (see separate assignment guidance
sheet for details)
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12
13
14
15
16
19
20
21
22
23
24
4/3 T Leadership and
3/29 R international strategy
4/10 T Organizing the MNC
4/5 R
4/10T
4/5 R
4/17T
4/12 R
4/17 T
4/12 R
The Role of
Administrative Heritage
The Transnational
Solution
The Transnational
Solution ????????
Prepare for Discussion:
Denmark: Globalization of the Welfare State
Read:
European Union: The Road to Lisbon
Prepare for Discussion:
Spain: Can the House Resist the Storm
Prepare for Discussion:
Finland and Nokia: Creating the World’s Most
Competitive Economy
Prepare for Discussion:
Dogus Group: Weighing Partners for Garanti Bank
5
25
26
27
28
4/24 T
4/19 R
4/24 T
4/19 R
5/1 T
4/26 R
Managing innovation
globally
Global scale versus local
responsiveness
Globalizing the domestic
firm
Reading:
To be announced
Prepare for Discussion:
P&G Japan: The SK – II Globalization Project
Read:
The Global Wine War 2009: New World Versus Old
Prepare for Presentation:
BRL Hardy
Final individual report due – 5/8/12 T: 5/10/12 R
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